Intel and Qualcomm plead against Huawei's ban

While the US government's hedging of the ban on Huawei is mainly focused on the consequences for the Chinese giant of technology, it should be remembered that the company's US suppliers are also likely to lose a lot of money. money because of the consequences of President Trump's decree.

It now appears that US chip makers, including Intel, Qualcomm and Xilinx Inc., have quietly lobbied the US government to try to lift Huawei's ban, as reported by Reuters.

Citing sources close to the situation, Intel and Xilinx Inc. officials reportedly met with the US Department of Commerce at the end of May to discuss a response to the company 's decision. Trump administration to register Huawei on the "list of entities", thereby preventing US companies from trading with Chinese Brand.

According to four other sources, Qualcomm also reportedly met with the Commerce Department to discuss the issue. The professional group Semiconductor Industry Association confirmed that it had held meetings with the US government on behalf of the chip makers.

While US chip vendors do not deny the potential threat to national security that Huawei's 5G network technology could represent, US companies also claim that the Chinese company's servers and smartphones use commonly available components. are much less likely to present a risk, sources also suggest.

Of course, the discussions are just that: a representative of the Commerce Department told Reuters that the government agency "systematically responded to requests from companies regarding the scope of regulatory requirements," but that discussions do not influence law enforcement actions.

On the lookout for number one

One thing not to be confused is the real reason for US chip makers' interest in this, which is to prevent the potential loss of billions of dollars in revenue.

"It is not enough to help Huawei, it is to prevent damage to US companies," said one of Reuters sources.

The report also states that "out of the $ 70 billion spent by Huawei in 2018 on the purchase of components, some $ 11 billion went to US companies, including Qualcomm, Intel and Micron Technology Inc."

The chip maker owned by Singapore (but in the United States), Broadcom, has already announced a decline in its second-quarter revenue and has lowered its expectations for the rest of the year, citing the US ban of Huawei as the main cause.